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First Cut: July Industrial Production declines in manufacturing and mining

Industrial production was down 0.2% in July from June due to falling manufacturing output (-0.4%) and mining (-1.8%) while utilities production jumped (+3.1%).

Manufacturing output was soft in most categories with durables down 0.2% and nondurables off 0.5%. Manufacturing of motor vehicles and parts was down 0.2%, and excluding motor vehicles manufacturing was down 0.4%.

Mining suffered a drop due to Hurricane Barry in the Gulf of Mexico, the Federal Reserve said. Oil and gas well drilling was down 3.3% in July, but other consumer and commercial energy products were up.

Utilities output was up on electricity which rose 3.7% during a period of extreme heat in many parts of the US.

The August data is likely to see a reversal of the moves for mining and utilities, but soft conditions for manufacturing are likely to persist.

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